Starting on October 14, 2020, NSC Wholesale Liquidating Trust ("NSC Trust"), the liquidation trust appointed by the by the United States Bankruptcy Court for the District of Delaware to prosecute claims on behalf of the NSC estate, filed approximately 62 complaints seeking the avoidance and recovery of allegedly preferential and/or fraudulent transfers under Sections 547, 548 and and 550 of the Bankruptcy Code.
By way of background, on October 24, 2018, NSC Wholesale Holdings, LLC and various of its subsidiaries filed voluntary petitions in the Delaware Bankruptcy Court. The Debtors continue to operate their businesses and manage their properties as debtors-in-possession. The NSC Trust was appointed to prosecute avoidance action claims on behalf of the estate.
According to the summons issued in these actions, a pre-trial conference has been scheduled for January 19, 2021 before the Delaware Bankruptcy Court.
For a primer on various defenses that can be raised in response to a Section 547 demand, the following post is a recommended read: A Primer on Defenses to Bankruptcy Preference Claims.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
